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1. Because resources are scarce relative to human wants, economics is best described as
4. As distinct from product market transactions, labor market transactions are unique in that
A. to the seller, the nonmonetary characteristics of the sale can be as important as the price.
B. labor demand curves slope upward.
C. the price of labor is not determined by supply and demand factors.
D. they are less complex.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Explain why labor economics is justified as a special field of inquiry.
Topic: Labor Economics as a Discipline
5. The concept of demand must be modified when applied to labor markets to reflect the fact that
A. nonmonetary characteristics of jobs may be as important to workers as their pay.
B. labor demand curves slope upward from left to right.
C. the demand for labor is derived from the demand for the various products that labor produces.
D. the demand for output is derived from the demand for labor used to produce that output.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
1-1
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent
of McGraw-Hill Education.
Difficulty: 1 Easy
Learning Objective: 01-01 Explain why labor economics is justified as a special field of inquiry.
Topic: Labor Economics as a Discipline
6. The "old" view of labor economics stresses _____, while the "new" view focuses upon _____.
A. analysis; markets
B. description; analysis
C. description; institutions
D. institutions; description
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Explain why labor economics is justified as a special field of inquiry.
Topic: The "Old" and the "New"
7. Because scarcity forces people to make purposeful choices, labor market participants
A. work as many hours as possible.
B. respond to changes in perceived costs and benefits.
C. make choices that cannot be predicted.
D. must have perfect information.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Describe how the economic perspective can be applied to analysis of labor markets.
Topic: Economic Perspective
10. Which one of the following topics is most suited to microeconomic analysis?
A. the average level of real wages
B. the unemployment rate
C. the average level of labor productivity
D. mobility and migration decisions
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
1-2
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent
of McGraw-Hill Education.
Learning Objective: 01-03 Identify those topics in labor economics that are mainly “microeconomic” and those that are primarily
“macroeconomic.
Topic: Overview
11. Nobel Laureate Gary Becker is known for economic theories in all of the following areas except
A. economics of households.
B. investment in human capital.
C. the "old" labor economics.
D. economics of discrimination.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-03 Identify those topics in labor economics that are mainly “microeconomic” and those that are primarily
“macroeconomic.
Topic: Overview
13. According to a newspaper account from Washington State, lottery winners in that state
A. usually continued to work when prizes were $1 million or less and usually quit work when prizes exceeded $4
million.
B. usually continued to work, no matter how large the prize.
C. usually quit work, no matter how large the prize.
D. were less likely to quit work the larger was the prize.
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Describe how the economic perspective can be applied to analysis of labor markets.
Topic: Overview
1-3
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent
of McGraw-Hill Education.
Learning Objective: 01-
3
02 Describe how the economic perspective can be applied to analysis of labor markets.
Learning Objective: 01-
03 Identify those topics in labor economics that are mainly “microeconomic” and those that are primari 4
ly “macroeconomic.
Topic: Economic Perspective 2
Topic: Labor Economics as a Discipline 5
Topic: Overview 5
Topic: The "Old" and the "New" 1
1-4
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent
of McGraw-Hill Education.